Despite dollar strength today (and more worrisome ZeroCOVID actions from China), oil prices continued to rise but news after-hours that an explosion knocked out a major pipeline sparked more upside.

Little is known about the cause, but the explosion at a pipeline connecting Northern Iraq and the port of Ceyhan in the Mediterranean has taken 450kb/d of supply offline in an already very tight crude oil market.

This news follows a ballistic missile attack over the weekend, where Iranian-backed Houthi rebels in Yemen targeted oil infrastructure in the UAE.

Pipeline operator Botas said the fire has been brought under control and cooling operations were under way.

Botas said the it would reopen once the “necessary measures” had been taken, but gave no indication of timing.

Read More @ Zero Hedge HERE

Hits: 0

Oil Spikes To Fresh 7-Year High After Key Iraq-Turkey Pipeline Explosion  https://amos37.com/oil-spikes-to-fresh-7-year-high-after-key-iraq-turkey-pipeline-explosion/

Josh Toupos

This post was originally published on this site